Union Commerce and Industry Minister Piyush Goyal on Tuesday invited Japanese businesses to deepen investments and partnerships in India, highlighting the country’s expanding market, young workforce and growing opportunities in emerging sectors.
Addressing a dinner hosted by the Uttar Pradesh government for a Japanese delegation in the presence of UP Chief Minister Yogi Adityanath, Goyal said the India-Japan partnership had acquired growing strategic and economic importance and was rooted in shared aspirations for peace, progress and prosperity in the Indo-Pacific.
He said the participation of the delegation from Yamanashi Prefecture reflected the expanding reach of India-Japan cooperation into Indian states and regions.
Goyal identified manufacturing, agriculture, technology, infrastructure, energy and defence, the green and blue economy, and India’s civilisational soft power as key areas where the strengths of the two countries could complement each other.
Uttar Pradesh emerges as investment destination
Highlighting UP’s economic potential, Goyal said the state, under the leadership of CM Yogi Adityanath, was working towards its goal of becoming a USD 1 trillion economy.
He said the state’s large and aspirational population, improving connectivity, industrial momentum and skilled workforce provided a strong platform for Japanese technology and expertise to complement India’s young workforce and expanding domestic market.
Goyal noted that UP has more than nine million MSMEs and is India’s fifth-largest state exporter. He also highlighted the presence of companies such as Escorts Kubota and Seiko Advance in the state’s manufacturing ecosystem.
The minister cited Jewar International Airport, the Yamuna Expressway and the Japan International Cooperation Agency (JICA)-supported Western Dedicated Freight Corridor among the infrastructure strengths of the state. He also pointed to 27 industrial clusters and ecosystems spanning sectors such as defence, semiconductors and electronics.
India-Japan trade at USD 27.5 billion
Referring to the 16th India-Japan Annual Summit held in New Delhi in July, Goyal highlighted Japan’s target of investing 10 trillion yen in India over the next decade.
He said investments in artificial intelligence, semiconductors, critical minerals, batteries, energy and next-generation mobility could play a significant role in shaping the future of both economies.
The minister said the growing partnership was already visible through projects such as the Mumbai-Ahmedabad High-Speed Rail corridor and Japanese-assisted metro systems in Delhi, Ahmedabad, Bengaluru and Chennai. He also noted that 11 Japanese industrial townships have been established across eight states.
More than 1,400 Japanese companies are currently operating in India, including Suzuki, Toyota and Honda in the mobility sector, Sony in electronics, and Hitachi and Mitsubishi in engineering, Goyal said.
Bilateral trade reached around USD 27.5 billion in FY 2025-26, while Japan has emerged as India’s fifth-largest source of foreign direct investment (FDI), providing a strong foundation for further expansion of economic ties.
Goyal to visit Japan next week
Drawing on the Japanese philosophy of “Kaizen”, or continuous improvement, Goyal said India’s reform journey reflected a similar approach. He highlighted improvements in ease of doing business, infrastructure, digital public infrastructure, multimodal logistics and Japanese language capabilities as measures aimed at creating a more conducive environment for investment.
Goyal said he would visit Japan from August 24 to 27, 2026, to advance discussions with the Japanese government and industry and further strengthen the Special Strategic and Global Partnership between the two countries.
Inviting Japanese businesses to make India, particularly Uttar Pradesh, a centre for their growth, Goyal said the state could serve as a hub for Japanese innovation catering to the Indo-Pacific and global markets.
He also underlined the long-standing civilisational links between India and Japan, recalling their historical connections through the teachings of Buddha.
